The pandemic may have reduced your wedding guest list, but not your expenses. Planning your D-Day with the necessary precautions is still a pricey affair. If you’re considering a wedding loan to help you out, you know a good credit score, preferably 750 or above, is crucial for approval.
Not only does it improve your loan eligibility, but it also helps you qualify for better loan terms. However, if you have a low credit score, fret not! Here are some tips to get a loan even with a bad credit rating.
Check your credit report to find errors
Before making a loan request, make sure you meticulously review your credit report. That’s because, sometimes, your credit report may show a low score despite timely debt repayments. It is due to errors in your report.
While there’s a common misconception that regularly checking your credit rating can lower your CIBIL score, soft inquiries like these don’t affect the score. So, make it a practice to check your reports regularly. If you find errors or a delay in updating your report, you can contact the authorities to get them rectified at the earliest.
Additional Read: Check Out the Documents Required for Getting a Wedding Loan in India
Request your lender for a NA or NH consideration
Have you never applied for a credit card or loan and have no credit activity to show or didn’t have any activity for the past 36 months? If yes, your credit report will show a NA or NH entry. NA implies your credit history is unavailable, whereas NH means you don’t have a credit history.
But, worry not! You could get a loan despite it. How? Let’s see. Ask your financier to consider the NA/NH entry citing your reasons clearly. Besides this, assure the lender of timely EMI repayments. To avail of bad credit wedding financing, you can show proof of a stable job and a steady income to your lender.
If you expect a salary hike soon or have an additional income source like rental income, freelancing, etc., inform your lender. Moreover, if you are employed with a credible employer, it also improves your likelihood of getting the loan approved. This way, the lender may approve your loan. However, you may be charged a higher rate of interest.
Apply for a joint loan
Getting a marriage loan for bad credit can be made easy if you apply for a joint loan. If you apply for a loan with a co-applicant who has a high CIBIL score, your chances of getting a loan approval increase. Co-applying for a loan can also make you eligible for a bigger loan amount and more competitive interest rates.
When you get a joint loan, you and your co-applicant share the debt burden. Here, if either of you defaults on the personal loan for a wedding, it’ll negatively impact both you and your co-borrower’s CIBIL score.
Additional Read: Avail a Personal Loan for Your Child’s Wedding
Over to you
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